Jay Kaplan on CNBC’s Nightly Business Report—Royce
article 10-23-2018

Jay Kaplan on CNBC’s Nightly Business Report

Jay Kaplan appeared on Nightly Business Report’s weekly Market Monitor segment to discuss opportunities he is finding in undervalued small-cap technology stocks.


Jay Kaplan was a guest on Nightly Business Report on Oct. 19 to discuss where he is finding opportunities in undervalued small-cap technology stocks.

Watch the video here. His segment runs from 21:18 through 23:26.

Jay was the guest of hosts Sue Herera and Bill Griffeth and highlighted three tech stocks in particular: Insight Enterprises, Vishay Intertechnology, and Electro-Scientific Industries. Jay made the case for technology hardware and software company Insight Enterprises, noting that it is selling 11 times earnings and why he believes the company will grow over the next couple of years. He added that he expects products created by Vishay Intertechnology, which makes custom semiconductors, to benefit from its niche in industrial and automotive applications. Electro-Scientific Industries creates laser-based manufacturing solutions, such as the small holes within cellphones. Jay likes that the company is selling at seven times earnings in light of what he sees as its growth potential.

In detailing why he prefers small-cap stocks, Jay said he favors companies with strong fundamentals and what he deems are attractive valuations. He added that many small-cap companies pay dividends, which over the long run have outperformed non-dividends payers within the Russell 2000 Index. Learn more about Jay’s market thoughts and stock picks here.

Watch the video here. His segment runs from 21:18 through 23:26.

Bio of Jay Kaplan

Jay Kaplan has been at Royce & Associates for 18 years, and he is a portfolio manager for five funds at the Firm. Prior to joining, he spent 12 years with The Prudential, most recently as Managing Director and Portfolio Manager. Mr. Kaplan holds a bachelor's degree from the State University of New York at Binghamton and a Master of Business Administration from New York University. He is a CFA® charterholder.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the persons speaking as of October 19, 2018 and may differ from those of other Royce investment professionals, or the firm as a whole. There can be no assurance with regard to future market movements.

Percentage of Fund Holdings As of 9/30/18 (%)

  Insight Enterprises Vishay Intertechnology Electro-Scientific Industries
Pennsylvania Mutual 0.5 0.5 0.5
Capital – Small-Cap 2.5 2.0 2.5
Dividend Value 0 1.1 0
Small-Cap Value 2.5 2.0 2.1
Total Return 0 0.8 0

Company examples are for illustrative purposes only. This does not constitute a recommendation to buy or sell any stock. There can be no assurance that the securities mentioned in this piece will be included in any Fund’s portfolio in the future.

The Russell 2000 Index is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. Index returns include net reinvested dividends and/or interest income. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. Frank Russell Company is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto. This is a presentation of Royce. The presentation may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. Frank Russell Company is not responsible for the formatting or configuration of this material or for any inaccuracy in Royce’s presentation thereof.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. The Fund invests primarily in small-cap and micro-cap stocks, which may involve considerably more risk than investing in larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.) The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss.



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